Market, Limit and Stop Orders
A simulated buy fills at the ask; a sell fills at the bid. Adverse slippage may be added. A market order prioritises execution rather than a specified price.
Learning outcomes
✓ Explain market fills and spread
✓ Explain limit-order conditions
✓ Explain stop-order conditions
Course curriculum
1. Market fills and spread · 12 min
A simulated buy fills at the ask; a sell fills at the bid. Adverse slippage may be added. A market order prioritises execution rather than a specified price.
2. Limit-order conditions · 12 min
A buy limit waits for the ask to reach or fall below the limit. A sell limit waits for the bid to reach or exceed the limit. The simulation never fills beyond the requested limit.
3. Stop-order conditions · 12 min
A buy stop triggers when the ask reaches or exceeds its trigger. A sell stop triggers when the bid reaches or falls below it. A stop is not a guarantee of the eventual fill price.